Goodbye Madison Avenue, Hello Google!

IWantMedia’s summary is about as good as it gets:

This year Google will sell more advertising than any newspaper chain, magazine publisher or television network. By next year Google is expected to have ad revenue of $9.5 billion, placing it fourth among U.S. media companies in ad sales—ahead of Time Warner and NBC Universal.

http://www.nytimes.com/2005/10/30/business/yourmoney/30google.html

http://online.wsj.com/public/article/SB113071868808083821-lHYE_q4_9IruWTJLYMwtu5MWiUs_20061031.html

That sound you just heard was the sound of Madison Avenue shitting bricks.


Internet Deals Deadly Blows to UK TV

10/30/2005 - 04:27 PM >> , ,

It seems the island-dwellers are ahead of us in more ways than one:

The internet, on the other hand, allows advertisers to target consumers more accurately and track their responses. It has become so popular among British advertisers that the value of website advertising rose to £490.8 million in the first six months of this year, up 62 per cent on the same period last year and more than the £407.8 million spent in the whole of 2003.

For the first time, the money spent on web advertising in Britain was more than that spent on outdoor advertising and more than the money spent on radio and cinema advertising combined.

At the end of the article, the experts backtrack to say that TV is still a “powerful” medium but that the days of TV ruling the advertising roost are on the way out.


Wal-Mart: Holding back entertainment progress?

10/27/2005 - 02:24 PM >> , ,

Those of you not living under rocks have probably seen one of the many Mark-Cuban-will-shatter-windows pieces that are floating around everywhere in the press these days. But over at Slate magazine, Edward Jay Epstein has an interesting take on the entire situation:

What has prevented the studios from closing the video window is simple: Wal-Mart. The company, which is the single biggest seller of DVDs, has made it clear that it does not want to compete with home delivery. Wal-Mart executives told Viacom’s home entertainment division in no uncertain terms that if any studio does away with the 45-day video window for a single title, they would risk losing access to Wal-Mart’s shelf space for all of its titles. Wal-Mart provided studios with more than one-third of their U.S. DVD revenue in 2004. In the face of Wal-Mart’s retail power, the studios have not dared (yet) to do away with the protective video window.

We here at BBB would normally give Mark a friendly slap on the back but we have some doubts. While this “Mark Cuban will save us from Big Studio Intransigence” is a catchy narrative, nothing has been said about Cuban’s own “no-window\” releases. Was there an amazing financial windfall as predicted by all these breathless hucksters? We don’t think the studios would hesitate for a second to start shattering their own windows if Cuban’s experiments were going well. Curiously, everyone has been silent on the cold-hard-cash front, choosing instead to pontificate on more conceptual matters.

Wal-Mart and the big studios are easy to villify but we don’t think even the power of Wal-Mart could keep studios from chasing after bigger profits. Something in Epstein’s math just doesn’t add up.


That Google Press Backlash Sure Didn’t Last Long

10/21/2005 - 12:33 PM >> , ,

Unsatisfied with merely conquering the Internet, Google is now considering setting its sights on TV:

(CEO Eric) Schmidt said the company also was mulling how it might extend its ad brokering system to television. “It’s certainly on the list” of projects Google is considering, he said in an interview. ..."Putting Google ads on TV is a tremendous undertaking,” he added, saying he wouldn’t speculate further on such an initiative. Such a move by Google, whose success has already instilled panic in some media companies seeing their ad revenue shrink, could incite similar fears in the TV industry.

We want to hear from you dear readers. What do you think of this move? Is it brilliant strategic thinking or has Google finally overstepped its boundaries only to be smacked down by old media?


3 UK lets cell users make, sell videos

10/18/2005 - 09:55 AM >> , ,

Cell phone cameras are starting to make things interesting:

The smallest of Britain’s five mobile phone network operators said on Tuesday that customers could now use their mobile phone to make a 30 second video and upload it onto a “See Me TV” channel for others to view.

Each time a clip is downloaded by one of 3 UK’s 3.2 million customers, the performer gets paid one penny.

A penny is not very much but don’t bet on the economics staying the same for long. Sure they will all be short crappy movies but that’s the most you can tolerate on a tiny two inch screen anyways. Disposable content for disposable devices, a perfect match.


Video iPod - Union Buster?

10/17/2005 - 10:04 AM >> , ,

Those of you who remember last Tuesday’s posting, we ended it by telling Hollywood that the ball was now in their court. We didn’t expect the reaction to come so swiftly:

If Apple’s new video iPod is as successful as expected in delivering paid programing over the Internet, Hollywood’s unions want their share and are worried about being shortchanged on residuals.

Writers Guild of America West president Patric Verrone was the latest to voice these fears, issuing a letter to members Friday that said WGAW and its sister guilds are unwilling to accept the DVD residuals formula, which takes most of the money off the table before sharing a set percentage of gross revenue.

Essentially ABC is applying the less lucrative DVD formula to the downloads but the union is arguing that this is more like TV (which is a more lucrative set of residuals). This is hilarious only because this is neither TV or DVD…


How Bob Iger Saved Network TV

10/14/2005 - 02:08 PM >> , ,

Good ol’ Mark Cuban is often a subtle fellow:

Bob Iger has gone contrary to what every current and previous TV network head has and would have done had Bob not turned the industry on its head with his announcement with Apple yesterday. Bob Iger has saved Network TV.

How ?

By completely changing the economic model.

But how do you really feel about this Mark? Stop hiding behind all those fancy words.

Seriously, we agree with you on Bob Iger but this won’t save network television. This is just the biggest nail in the coffin so far. At only $2 a pop, how can Bob compete with smaller production companies with lower overhead?


It’s All About the Public Relations

10/13/2005 - 09:58 AM >> , ,

Every once in a while, for our own amusement, we cruise the shady back alleys of the media insiders world. A world where content makers, advertisers and public relations lackeys engage in all sorts of unspeakable acts. We hit the streets so that we can bring you, dear reader, the latest on the seamy underbelly of the media world. You know things are getting weird when media-porn outlets like PR Week say the following:

It is no secret that traditional media have suffered in credibility and reputation over the past few years. While promises by public editors and apologies by editors-in chief for publications’ transgressions have become far too common, some outlets are now considering other ways to regain readers’ trust.

Kerins says media companies are more likely to utilize outside PR firms than in previous years.

“You’re seeing a much greater convergence of public relations in the news media,” he says.

For many media organizations, transparency is a growing trend, says Sam Whitmore, editor of Sam Whitmore’s Media Survey, a website that offers analysis of the industry.

“I think media are trying to figure out a good way to involve readers and listeners in their processes without necessarily handing over the keys,” he says.

To give you some context, this quote was pulled from an article on “PR Trends” where their greatest minds mull over the near future of the PR industry. We find it endlessly amusing that the news industry’s response to the massive drop in quality journalism is to employ PR flacks to “improve their image.”

Most interestingly though is involving the audience “in their processes without necessarily handing over the keys.” This is exactly the dilemma faced by old media as new media begins to rise, there really isn’t a way to imitate the interactivity of the net with one-to-many media like television, newspapers and magazines.


Video and Podcast Search Engines

10/12/2005 - 03:20 PM >> , ,

Search Engine Watch has a great article on the burgeoning field of Video/Audio search:

“Video search is still difficult to use right now,” said Peter Chane, Senior Business Product Manager at Google. “You often can’ t find the video you want. Playing back videos can be a little weird—you can have problems hearing audio with video. And many files might not be Mac-compatible.”

Still, many search engines offer video searching capabilities, including Google Video, Yahoo Video, Singingfish and Blinkx.

The number of places allowing you to upload audio/video has exploded and now the problem is finding the content that you want. [via Smart Mobs]


New Video iPod: There goes the motherf@#king neighborhood

ib_ipod_dimensions.gif hspace=10 vspace=10 align=left

In case you live under a rock:

The new iPod is has 16x9 screen, 320x340 pixels and 260,000 colors and does realtime decoding of MPEG4 and H.264 at 30fps. It has video out. The 30GB for $299 and 60GB for $399 will be out next week. The 60GB model is thinner than the current 20GB. The 30GB holds 75 hours of video. They come in white and black. They go on sale late next week—the new tagline is “watch your music.” The new ad has Eminem in silhouette campaign.

Very cute. About the same size and resolution as the new Sony PSPs, good choice. Now let’s hope the screen is as bright and clear. But really, the video iPod isn’t the biggest story here:

iTunes 6. Hey, didn’t they just do 5 like, last month? Video podcasting is here, now. The iTunes store will have 2,000 music video. $1.99 each. Six Pixar short films will be available as well, for $1.99. Each video is the size of six songs.

You can buy TV shows through the iTunes store. Desperate housewives and Lost from ABC—which is owned by Disney. “I know those guys,” says Jobs. Going to offer 5 shows on itunes—Lost, Desperate Housewives, Night Stalker and two Disney Channel shows. You can buy current episodes the day after they are broadcast on the air. Shows are downloaded commercial free, no ads! About a 10-to 20-minute download for one episode. $1.99 per episode of for current and previous season tv shows. Watch them on your computer or iPod.

That’s right. Apple has just brought friggin’ Vodcasting into the mainstream. Hollywood, Apple just invaded your turf. The ball is in your court.


Doing the numbers on the AOL-WeblogsInc deal

10/11/2005 - 03:45 PM >> ,

Tristan Louis does a thought-provoking break down of how much money AOL has spent per blog in the WeblogsInc network:

Data for the rest of us?

In acquiring Weblogs Inc., AOL has now provided us with some numbers traditional media are willing to pay for a blog. Looking at the numbers above, one can try to guess at the value of a link from an external site. a single link on the weblogsinc network represents 0.002258559942180087 percent of the overall network.

He then goes on to figure out that each link to the blog network is conservatively valued at $564.64. It’s a fun way to break down what traditional media companies are willing to pay for blogs (if one can even consider AOL a “traditional” media company). [via MetaFilter]


Sometime the Death of TV isn’t just the Death of TV

10/11/2005 - 03:04 PM >> , ,

OTX did a study that shows that the same core audience that is abandoning TV has also been abandoning film:

Males under 25 years-old, a core movie audience, saw fewer films this past summer but watched more DVDs, played more video games and surfed the Web more often than previously, according to a study released on Monday.

These alternatives to film are also the reasons given in the slide in Nielsens ratings for young males.


HBO Actively Poisoning BitTorrent

10/07/2005 - 11:40 AM >>

Fascinating post over at O’Reilly Radar:

HBO is actively poisoning the BitTorrent downloads of the new show Rome. In addition to an older tactic of offering bogus downloads that never complete, HBO is now obstructing the downloads offered by other people. ...

HBO runs peers that tell the tracker they have all the chunks of the show, but then send garbage data when a downloader requests a chunk. The downloading client can detect that it’s garbage and will try another peer for the chunk, but the end result is that it takes much much longer to download shows. ...

It’s also very effective--to test this, I randomly selected a healthy torrent for the 2nd episode of Rome, and after hundreds of failed chunks the download stalled at around 30%.

Actively poisoning downloads is a horribly stupid idea. It is true that in the short term HBO will gain a little ground on the “pirates” but unfortunately technology has a way of routing around problems. Just like you might use your social networks to find people you know, new technologies are now arising that allow Peer 2 Peer networks to detect “dishonest” hosts and blacklist them.

Wouldn’t it be great if they just put all that effort into poisoning downloads into finding new ways to make money? Sometimes people just have to learn the hard way.


Finnish “Star Trek” Spoof Makes World Record

10/07/2005 - 07:22 AM >> , ,

You should really download this when you get a chance, its absolutely hilarious:

A Finnish spoof of the sci-fi classic “Star Trek” has boldly gone where no feature film has gone before, relying on free distribution over the Internet to reach more than 450,000 viewers in less than a week.

“Star Wreck: In the Pirkinning” is a full-length feature in Finnish with English subtitles. It was made over seven years by a group of students and other amateur film makers with a bare-bones budget and a few home computers to create elaborate special effects.

The funny thing about internet distribution is that it really blows away the old distribution stranglehold. Prior to this film, the most watched Finnish film was:

Finland’s most-viewed film ever is “The Unknown Soldier” (1955) with 2.8 million viewers. To reach the top three, “Star Wreck” would have to surpass 1 million.

As of right now the filmmakers estimate that they have already hit the magical one million mark and they very well may become the most widely seen Finnish movie in history (not that its a high bar to pass but a notable one nonetheless).


Advertisers Pay Big Money for Audiences on the Net

10/06/2005 - 11:43 AM >> , ,

They must read BBB because the New York Times has a piece on how internet distribution cuts down on costs for smaller video producers:

While there have been a few successful subscription services for Internet video, most notably those offered by Major League Baseball, the driving force of the online video market is advertising.

“The advertising model is extremely simple and very attractive: you simply put your 30-second commercial in front of the video,” said Josh Bernoff, an analyst with Forrester.

Advertisers are paying $25 per thousand users who see their online commercials, more than they pay for network television, Mr. Bernoff said.

The world of wildly inaccurate Nielsens is over. Advertisers are willing to pay a premium for smaller online audiences because they know exactly what they are getting. 


AOL Buys Its Way into the Blogosphere

10/06/2005 - 10:12 AM >> , ,

The media giants continue their infiltration into the domain of snarky critics:

AOL will inherit 85 blogging sites, including Engadget and Autoblog, where users can read about everything from travel to technology and debate on topics like parenting and movies.

The agreement, which was signed Wednesday, is expected to close next week. The deal will make the Santa Monica, Calif., and New York-based Weblogs a wholly owned, stand-alone subsidiary of AOL, operating with full editorial control and independence.

Where the eyeballs go, the dollars go. This is a fact not lost on Fox or AOL. Perhaps they didn’t feel like sitting around and letting the future fall into the unscrupulous hands of Yahoo and Google.


Bob Wright States the Obvious

10/04/2005 - 06:39 PM >> , ,

In an article woefully short on specifics, NBC Universal Chairman and Chief Executive Bob Wright says:

“The problems are spreading and no one is immune,” Wright said. “In my business we’re just looking over the shoulder of the music industry, which has gone through a very difficult time.”

You heard it here first folks, piracy has hurt the music industry! So Mr. Wright, what are you going to do about it?

“It’s something we have to do, but it has to be done well,” Wright said “These movies are so expensive we have to be careful ... We’re pretty close. Hopefully by the end of this year we’ll be able to do that.”

Huh? Do what? Launch online services for downloading movies? You already have two of those (the oft neglected CinemaNow and Movielink). Clearly that is not going to change anything.

Oh and just for added humor he even drops mention of the DVD format war:

“You’d always rather have one standard—that’s going to happen eventually,” he said. “Hopefully this won’t go as far as (the) Betamax-VHS (video tape format battle).”

This guy is on a roll. Next he will tackle world peace and conflict in the Middle East. Don’t you wish that vaguely restating obvious problems at a press conference was all that was necessary to convince the vulgar masses that you aren’t completely disconnected from reality? Bob Wright does. This makes Eisner’s closing speech look like a work of Shakespeare.


New Lines Drawn in the DVD Format Wars

10/03/2005 - 03:33 PM >> , ,

Just in case you weren’t paying attention and you thought it was safe to sink thousands of your precious dollars into the future DVD format:

“After more detailed assessment and new data on cost, manufacturability and copy protection solutions, we have now made the decision to move ahead with the Blu-ray format,” Thomas Lesinski, president of Paramount Pictures, said in the release.

Toshiba said in a statement on Monday that it believed Paramount continued to back HD DVD, basing that position on comments made by Paramount officials in previous press reports.

Are you confused yet? Apparently Paramount at first announced that they would support HD DVD. So are they backing out and supporting a different format or are they now endorsing two formats? Will every movie be released on both types of discs? Can they afford to do that? Why are they all going through this agonizing bullshit again?

Lesinski said the fact that Sony’s next-generation PlayStation 3 game console would come equipped with a Blu-ray DVD player was a key factor behind its support. PlayStation 3 is due to be launched next spring.

The subtext to all this is that Microsoft/Intel threw their weight behind the technically inferior HD DVD format because they want Sony’s new Playstation 3 to suffer. But if I were Microsoft I’d make my new console play both formats. It will look stupid when everyone has to throw out the Xbox 360 because it won’t play the most popular movie format.